What to do? (Health insurance question)

[Thomas3857]

Looking for some advice. I plan on retiring by the end of 2022 and my wife and I are going to live in Spain for at least a year. In 2024 we may stay or we may return depending on a variety of factors. In order to get a non-lucrative Spanish visa we have to shown proof of health insurance. Our US based insurance with UMR is not sufficient for obvious reasons. I have the following options regarding my current insurance:

1. Continue to pay the nearly $1000 per month premiums with a $4200 deductible and 80/20 after that up to $10,000 maximum out of pocket. This will cost me around $12,000 for insurance I will likely never use in 2023 unless we return to the US during that year. Only advantage I can see is I don't have to re-apply for coverage when I return and this is a grandfathered plan outside of ACA requirements. If I don't return to the US, I just wasted $12,000.

2. Cancel the coverage (saving $12,000 in premiums for the year) but have to re-apply with UMR when I return at which point I lose the grandfathered status and will be subject to pre-existing condition riders and my premium may or may not be higher than it is now. Seems risky and the least favorable option.

3. Cancel the coverage and when/if we return to the US hope ACA is still in place and we are able to control our income and are eligible for ACA subsidy.
(this is what I'm leaning towards)

I called UMR and they won't allow me to pause or suspend coverage and my plan won't allow me to increase the deductible as a way to lower my premiums.

Thoughts?

Thanks - Tom

 

[jollystomper]

What percentage of your retirement assets is $12,000, and how will losing that impact your spending?

 

[Thomas3857]

What percentage of your retirement assets is $12,000, and how will losing that impact your spending?

it's less than .50% of my assets and will likely reduce my retirement budget by 12% per month

 

[MichaelB]

Cancel the coverage and when/if we return to the US hope ACA is still in place and we are able to control our income and are eligible for ACA subsidy.
(this is what I'm leaning towards)

The most likely scenario is the ACA is still in force when you return. The availability of subsidies is also the most probable scenario. In my experience, access to comprehensive health care insurance is the critical factor, and that shouldn’t be a problem. How long until you are eligible for Medicare?

 

[Thomas3857]

The most likely scenario is the ACA is still in force when you return. The availability of subsidies is also the most probable scenario. In my experience, access to comprehensive health care insurance is the critical factor, and that shouldn’t be a problem. How long until you are eligible for Medicare?

9 years for me and 8 for my wife. Thx

 

[ivinsfan]

If you want to spend 12K for placeholder insurance that's your decision. Only you can decide if it's worth it. Now as a devil's advocate what if you or your spouse get cancer or some old disease in Spain and the best treatment is in the US?